# The Federal Reserve's Independence Crisis Worsens, Global Financial Landscape Faces Restructuring

Recent political disputes over the Federal Reserve Chair have sparked widespread attention in the financial sector — on the surface related to budget issues, but fundamentally targeting the century-old foundation of the Fed's independence. Behind this power struggle lies a deeper risk: the possibility that interest rate cuts could be hijacked by political factors.

## Two Risk Scenarios Are Emerging

**Scenario One**: The Federal Reserve compromises, and rate cuts become a political tool. Once policy independence is broken, inflation expectations could spiral out of control, the US dollar's creditworthiness may face severe tests, and global markets are bound to experience intense volatility.

**Scenario Two**: The Federal Reserve stands firm, and policy tug-of-war intensifies. As expectations become more chaotic, traditional assets such as stocks, bonds, and forex markets will face collective pressure.

Regardless of which scenario unfolds, it signifies that cracks in the trust of the dollar system have already appeared.

## Cryptocurrencies Become a New Focus for Allocation

The volatility of the US dollar index, distorted rate cut paths, and divergence in global central bank policies — these factors collectively boost demand for safe-haven assets. Bitcoin, Ethereum, and other non-sovereign assets are entering an important allocation window.

As the certainty of traditional financial systems diminishes, seeking alternative safe-haven tools becomes a rational choice. Gold has been validated over decades, and Bitcoin, as an emerging asset class, demonstrates unique value in such uncertain environments.

The wealth landscape of 2026 may be redefined. Is your asset allocation ready?